9) Let's compare the performance of the US. economy in two different time periods, to understand changes in its physical capital stock and efciency units of labor. The Bureau of Labor Statistics puts out information on employment every month and quarter. Find the archives, and the May 2021 employment situation. a) b) d) In the report find Household Data on Employment status of the civilian population by sex and age (Summary table A), seasonally adjusted. What was the the size of the labor force in May 2020 versus May 2021? How much is the difference? In May 2020 and May 2021, what was the unemployment rate? Does the unemployment rate increase or decrease from May 2020 to May 2021? Does the number of employed workers increase or decrease from May 2020 to May 2021? What is causing this difference? Using the aggregate production function framework, assume that the average efciency of human capital in the US. remains unchanged during this period. What happens to efciency units of labor from period 1 (May 2020) to period 2 (May 2021). Express your results formally as an inequality. Remember efciency units of labor (H) in the two periods can be written as H] = L1 x hi and H2 = L2 x h2 (L is total number of employed workers and h is the average efficiency of human capital). What are the consequences of this change in employment for GDP? Express your results formally as an inequality, using the aggregate production function presented in the chapter. What are the consequences for GDP per capita and GDP per worker? Assume the total population is the same in 2020 and 2021. Suppose that there is a technological standstill from 2020 to 2021, efficiency units of labor increased but, at the same time, physical capital stock decreased. Can you say whether GDP will increase or decrease? Why or why not